Tether USDT is currently available on four different blockchains. This announcement makes Algorand the fifth blockchain on which it will be launched.
Algorand is trying to develop a “public, permissionless proof-of-stake (PoS) blockchain with an open-source approach.”
Chief technology officer of Tether, Paolo Ardoino, commented on the development, saying:
“Extending Tether into the Algorand ecosystem is a fantastic opportunity for us to further contribute to blockchain interoperability and collaboration. We are very excited about the potential this enables for other projects in the decentralised ecosystem and we eagerly await working closely with many of them in the future.”
More info on Algorand and Tether
According to a post published on Medium, Algorand aims to solve the so-called blockchain trilemma (which refers to the difficulty of developing a system that is scalable, decentralized, and secure at the same time). Tether is widely used by traders to move funds in and out of crypto and doesn’t need to be exchanged back into dollars with each trade. Despite its widespread use in the crypto-community, the stablecoin has had its issues including accidentally minting $5 billion USDT during a chain swap process last week.
Users and regulators are still skeptical about the cryptocurrency as Tether has never released a full accounting audit to prove its coin is backed by USD, as it claimed for years. Recently, its lawyers acknowledged that USDT was only about 74 percent backed by fiat equivalents as of April 30. Tether’s relationship with its sister firm, Bitfinex, has also raised eyebrows with claims that the token has been used to prop up the price of bitcoin which led to investigations from the New York’s Attorney General’s office.